Coinbase, one of the leading cryptocurrency exchanges in the world, has confirmed that they are working on launching their wrapped Bitcoin, cbBTC, on the Solana network. This move comes after the successful launch of cbBTC on the Ethereum and Base Network just 10 days ago.
Hassan Ahmed, the director for Singapore at Coinbase, made the announcement during a session at the Solana Breakpoint 2024 event in Singapore. The decision to launch cbBTC on the Solana network is aimed at providing a wider range of crypto traders access to Coinbase’s wrapped Bitcoin within the second-largest DeFi ecosystem.
While the exact date for the launch on the Solana network has not been disclosed by Coinbase officials, the Solana DeFi community is eagerly anticipating this development. Once cbBTC is integrated into the Solana network, it will not only gain support but also become a part of Solana’s $6.2 billion decentralized finance ecosystem, catering to millions of users.
The decision to launch cbBTC on Solana comes amidst some controversy surrounding Coinbase’s wrapped Bitcoin offering. Following a controversial custodial change to wBTC by BitGo, Coinbase saw an opportunity to launch cbBTC. While Coinbase has clarified that cbBTC will always be backed 1:1 by an equal amount of Bitcoin, critics have pointed out that it is a centralized form of wrapped Bitcoin that may not be necessary.
Despite the criticism, Coinbase CEO Brian Armstrong defended the decision, highlighting the reputation of the exchange. He acknowledged that cbBTC is centralized but emphasized the trust and reliability that Coinbase offers to its users.
In conclusion, the launch of cbBTC on the Solana network represents a significant step for Coinbase in expanding its offerings to a wider audience of crypto traders. As the crypto industry continues to evolve, it will be interesting to see how this move impacts the DeFi landscape and the adoption of wrapped Bitcoin within the Solana ecosystem.